Page 191 - AAAXII

Model Test Papers M.181

On 31st March, 2018, Kusum retired from the firm and remaining partners decided to
carry on the business. It was agreed to revalue the assets and reassess the liabilities
on that date, on the following basis:
(i) Land and Building to be appreciated by 30%.
(ii) Machinery be depreciated by 30%.
(iii) There were Bad Debts of ` 30,000.
(iv) The claim on account of Workmen Compensation Reserve was determined at ` 16,000.
(v) Goodwill of the firm was valued at ` 2,80,000 and Kusum’s share of Goodwill
was adjusted against the Capital Accounts of the continuing partners Sneh and
Usha who have decided to share future profits in the ratio of 3 : 4 respectively.
(No goodwill account being raised)
(vi) Capital of the new firm in total will be the same as before the retirement of Kusum
and will be in the new profit-sharing ratio of the continuing partners.
(vii) Amount due to Kusum be settled by paying ` 1,00,000 immediately and balance
by transferring to her Loan Account which will be paid later.
Prepare Revaluation Account, Capital Accounts of Partners and Balance Sheet of the
firm after Kusum’s retirement. (8)

17. Fable Ltd. invited applications for 50,000 shares of ` 100 each at a premium of ` 10
per share payable as follows:
` 50 per share on Application;
` 35 per share on Allotment (including premium);
Balance on First and Final Call.
Applications for 92,500 shares were received. Applications for 30,000 shares were
rejected and allotment was made on pro rata basis to the remaining applicants.
Sahil, who had applied for 1,250 shares, failed to pay the amount due on allotment
and call. The company forfeited his shares. Later, out of the forfeited shares, company
reissued 500 shares at ` 120 per share as fully paid-up.
Pass necessary Journal entries in the books of Fable Ltd.
Or
Sunrise Ltd. issued 30,000 shares of ` 10 each at par, payable as follows:
` 3 per share on Application;
` 3 per share on Allotment;
Balance on First and Final Call.
The applications were received for 50,000 shares. Applications for 10,000 shares were
rejected and allotment was made on pro rata basis to the remaining applicants.
Nimesh who had applied for 1,600 shares failed to pay the amount due on allotment and
call. The company forfeited his shares. Later on, out of the forfeited shares, company
reissued 800 shares at ` 10 per share as fully paid-up.
Pass necessary Journal entries in the books of Sunrise Ltd. (8)